Systemax to Gateway: Oh, Yeah? Match These Offers!

PC with Intel Pentium III, 128 MB RAM, 20GB Hard Drive for $499;
15" LCD Flat Panel Monitor for $399;
PC with Pentium 4 and Windows 2000 for $899 PC Price War ... ? Now This Is Really Cool.

June 4 /PRNewswire/ -- Systemax Inc. (NYSE: SYX), a leading manufacturer and distributor of PC hardware and related computer products, today announced another round of aggressive promotions intended to maintain its value pricing leadership position in the PC industry.

Systemax is offering a Venture T7M PC with an Intel(R) Pentium(R) III processor, 128 MB of memory, a 20GB hard drive, a 50X CD-ROM, and Microsoft(R) Windows(R) 98 for $499. The system can be bundled with a Systemax 15.1" LCD flat panel monitor for just $879. The flat panel 15" LCD monitor is available separately for only $399.

Systemax also has slashed another $100 off its Venture U14b Business PC, which was introduced last month at a breakthrough price of $999. Now only $899, the U14b features an Intel Pentium 4 processor (1.4 GHz) with 128 MB of memory, a 20GB hard drive, a 52X CD-ROM and Microsoft Windows 2000.

"We applaud Gateway's well-publicized marketing campaign announcing that it will sell PCs comparably configured to those from Dell, Compaq, Hewlett-Packard, IBM, Sony, and Toshiba for less than the advertised prices of those companies," said Bob Dooley, Systemax's senior vice president for marketing and sales. "We're flattered -- but not surprised -- that the good folks from South Dakota aren't offering to match our price promotions. We guess it's just not 'cool' competing against Systemax."

Mr. Dooley added, "Consumers and businesses are becoming increasingly aware that a PC's value is determined by the components inside and technical support, not the name on the box. Although the Systemax name is not yet as well known as Gateway and other name-brand competitors, we are positioned to take advantage of the rapid decline in prices for name-brand PC components. We are committed to passing on those savings to our customers and substantially growing our market share."

Systemax, which specializes in developing value products and services for small and medium-sized businesses and is one of nine featured manufacturers on Microsoft Corp.'s Windows 2000 web site, recently introduced a line of high- performance servers that are as much as 10 times faster than traditional workgroup units and priced 30% to 60% lower. Systemax was the first computer manufacturer to ship Windows XP-ready PCs. Systemax also was the first PC manufacturer to introduce a PC with an Intel Pentium 4 processor for under $1,000.

Systemax's PCs and monitors are backed by Systemax's unparalleled customer service, which is exemplified by the company's slogan, "It's like having your own Systemax Tech Guy."

"When it comes to value, quality, and service, no one can beat us," Dooley said.

Systemax's PCs are available through Global Computer Supplies (http://www.globalcomputer.com), TigerDirect (http://www.tigerdirect.com), Midwest Micro (http://www.mwmicro.com), Dartek (http://www.dartek.com) and other leading distributors. Systemax's expert sales specialists can also be contacted at 1-800-8 GLOBAL.

Systemax (http://www.systemax.com) has developed an integrated system of branded e-commerce web sites, direct mail catalogs, and relationship marketing to sell private-label and name-brand PC hardware, related computer products, and industrial products, to businesses in North America and Europe. With annual sales in excess of $1.5 billion, Systemax is a Fortune 1000 and Inter@active Internet 500 company.

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SOURCE Systemax Inc.